GAO Audit Reveals Fed Gave $16 TRILLION to TBTF Banks From 2007-2010

In 2008, the American public was enraged as Hank Paulson shoved an $800 billion bankster handout named TARP down the throats of American taxpayers.The recently completed GAO audit of the Federal Reserve as required under the Frank/Dodd legislation has revealed that the true number given to TBTF banks during the financial crisis was nearly 20 FOLD LARGER AT $16.115 TRILLION!!

In fact, 7 individual TBTF financial institutions each received bailouts in excess of $800 billion through various 4-letter acronym lending facilities!

The GAO report reveals that Citigroup received an astonishing $2.5 TRILLION, Morgan Stanley (who again may be on the verge of collapse) was bailed out to the tune of $2.04 TRILLION, and Goldman Sachs & JP Morgan received over $1.1 TRILLION combined!These funds were handed out at 0% interest rates, and VIRTUALLY NONE HAVE BEEN PAID BACK!

Take a moment to put $16.115 TRILLION in perspective. We bring this report back to our readers’ attention due to the US debt milestone just achieved. For those who missed the news, the official US debt just passed $16 trillion in the past week.
Without even the knowledge much less the consent of the American public, the Federal Reserve has given TBTF financial institutions a greater sum then the entire US debt- just between 2007-2010! This doesn’t even account for the $Trillions given to the ECB and European banks in late 2011 to prevent the collapse of the European banking system!

The criminal Federal Reserve banking system gave TBTF financial institutions (both US AND FOREIGN) a combined $16.115 TRILLION!
Directly from the GAO report, the top 15 banks the Fed bailed out are below:

This is just 1 example of why gold and silver do not require official Quantitative Easing to continue their bull runs. The Fed is printing over $5 TRILLION A YEAR JUST TO KEEP THE FINANCIAL SYSTEM FROM IMPLODING!

GOLD AND SILVER HAVE RESPONDED, AND WILL CONTINUE TO RESPOND TO THESE ACTIONS, WHETHER THEY ARE REVEALED TO THE PUBLIC OR NOT!!!

There is a direct correlation between interest rate derivatives and the fire-hoses of currency pouring into the windows of these banks across the planet. As the creation of currency is by loan as principal at interest, where interest service funding itself must also be borrowed into existence as new principal … at interest … the amounts requisite to prevent the whole confabulation from imploding into a domino cascade of defaults has entered into the last phase of exponential blow-off.

There is absolutely no amount of money that can paper over the derivatives debacle. Politicians keep trying, though. Since this is an impossible task and quite clear to even those of us who are nor economists, it’s almost as if the great bank robbery of 2008 is the crime that just keeps the money spigot flowing. Obviously, the banksters are gorging themselves on this government largess but so too are the brokesters. Is there any doubt that the politicians are also getting a slice of this pie?

What SHOULD have happened in 2008 was not bailouts but bankruptcy for those too incompetent to run their businesses correctly, with the small investors and depositors bailed out. For the banksters and other thieves, however… nothing but some time in a cage to rethink their lives.

Disgusting, isn’t it. Shocking that there has been little to no reporting on this. We did an RNN piece on this story back in January. Here’s a link to that one (Ben gets one of underlings to create the money in a secret lab).

I recall that the mini audit of the Fed a couple of years ago revealed this $16 trillion was part of the $29 trillion printed in this time period. The rest went to Europe–about $5 trillion or so, another $4 trillion for walk around money and maybe 3 trillion unaccounted for. It probably went East. Bernie Sanders expressed shock, shock! that this happened. For an old line kleptocrat blowhard socialist like Sanders to be shocked over this is really going some. Most politicians of his ilk get all giggly when they see money like this pissed down the drain.
Now here’s the funny (sort of) part. $29 trillion plus another $5 trillion or so since 2010 comes to $34 trillion. That’s about half the world’s GDP. So, in 6 years the Fed has produced about $5.6 trillion a year. The Euro zone soaked up about $10 trillion in currency; $ 5 trillion in apology bail outs for the AAA rated junk mortgages and another $5 trillion in ECB printing.
The reason I calculated this extraordinary amount, maybe around $34 trillion plus or minus a few trillion is to ask the question. Where did the money go? And what did it accomplish? The entire world GDP is dropping like a rock. No major economy is doing well. China’s economy is coming in like a 747 wheels up onto the tarmac. The US GDP has moved backwards for the last 5 years. Whether you adjust for inflation or not, it’s negative. Europe??? Fuggedaboudit. With $10 trillion thrown in the pot the whole shebang is cratering.
It seems that after $34 trillion pushed into the world’s economies, an action which accomplished nothing but put some funny money FIAT under a slow collapse, we have delayed the day of reckoning by printing instead of allowing the system to reset. This leads me to believe that there really is no amount of money in the world that will delay or offset the coming collapse or reset. But it’s my contention that the world central banks and governments won’t at least try their best to stop what is coming. BTW did any of the readers get some of this FIAT?

Wow these institutions are getting higher bailouts than entire European countries! This eventually will stop and when it does its all over! People are going to lose their shirts, pants, shoes etc until they are butt naked in the streets.

Thomas Jefferson:

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

I know there’s corruption and crony capitalism everywhere but I’m really glad I am not an American or an Englishman. The corruption in these two (Western) countries is just mind-boggling. The scariest thing is how blatant these guys are about it-they don’t even try to hide the fact that they’re fleecing the entire populace!

I’m not sure what you think I’m trying to hide? I am Canadian btw and although we have a lot of our own problems, IMO they are no where near as precarious as they are down south (or across the pond in the UK). With all things considered, things here are rather nice (many sectors ie. oil are even prospering), at least until our housing bubble implodes.

It is sick that the banks have gotten away with 16 trillion dollars. If you try to sue them, it won’t even work. Now what’s the point of doing services with banks when banks get dollars to do bad stuff. How long will you Americans wait for a revolution? I’ll say that it will be a good time to do it when you lost everything and the national debt is passed to American citizens because you have nothing else to lose if you die except your life that was suffering.

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